Philip Morris Cuts Guidance Amid Zyn Challenges

PMI is increasing investment in its Zyn nicotine pouches to maintain US leadership amid intensifying competition. In the June quarter, the company reported about $11.2 billion in revenue and surpassed earnings expectations, with adjusted earnings per share around $2.20. It rolled out Zyn Ultra and additional flavors, and plans 1.5 mg and 8 mg variants plus expanded marketing and distribution to defend market share. Despite the beat, PMI trimmed its full-year adjusted EPS guidance for a third time this year, citing adverse currency movements and higher input costs from global events. The firm faces pressure from rivals such as BAT’s Velo, but has benefited from FDA positioning that allows some Zyn products to be marketed as less harmful, supporting continued product diversification and pricing strategies. Overall, PMI’s results highlight strong momentum in its smoke-free portfolio while headwinds from currency and competition temper growth expectations.